Aib staff mortgage

Discussion in 'Tracker mortgages - other than redress issues' started by Rarrrrrr, 18 Mar 2016.

  1. Rarrrrrr

    Rarrrrrr Registered User

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    Hi there
    I'm just wondering if anyone has discussed aib staff mortgages here. I have a staff mortgage, I took it out in 2007. At the time I had the majority of it on a staff preferential fixed rate of 3% and then the balance was on a tracker rate. After a few years as far as I remember we were advised to move to a variable rate as we would no longer have to pay benefit in kind. I'm just wondering if we should have been offered a tracker rate as the other portion of the mortgage is on a tracker rate? I can't remember all of the details as to be honest although I'm staff I didn't really understand all of the terms and conditions at the time. I have requested a copy of my letter of offer and NY correspondence I signed/ received when I moved from variable. To summarise.. Has this been brought up before and if so what was the advice/ opinion. Thank you
     
  2. Brendan Burgess

    Brendan Burgess Founder

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  3. Rarrrrrr

    Rarrrrrr Registered User

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    Thank you.. I'm seen the BOI threads alright I just can't find anything about AIB. I know a lot of staff switched at the same time, I will have to investigate more. Thanks again. For replying
     
  4. Rarrrrrr

    Rarrrrrr Registered User

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    I recieved a response from AIB. I went on to a standard 1 year fixed rate as it was lower than the staff rate. At the end of the 1 year fixed period they wrote to me and asked what my instruction was, I did not reply and was put on to a standard variable rate. No idea where this leaves me, any guidance is very much appreciated.
     
  5. pyrite

    pyrite Registered User

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    Can you keep this updated as I'm in the exact same position
     
  6. Sarenco

    Sarenco Frequent Poster

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    Did your contract provide that, in the absence of any election on your part, you would default to a standard variable rate as determined by the bank from time to time (sometimes known as the "reversionary" rate in the UK)?
     
  7. test123

    test123 Frequent Poster

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  8. pyrite

    pyrite Registered User

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    I requested all my mortgage documentation and its available to collect. I haven't rang that number yet. But on speaking to staff mortgages they where adamant I do not have a case but I wouldn't trust them on past experiences.
     
  9. Sleven273

    Sleven273 Registered User

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    Any update on this?
     
  10. test123

    test123 Frequent Poster

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    My mortgage is currently under review with them, in the formal process. Staff business did phone me & tell me as I requested to come off the tracker myself that I not eligible under the redress scheme, but I'm not accepting that until I hear back formally from the review.
     
  11. Gracie debru

    Gracie debru Registered User

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    Hi just wondering if you have had any update on this?
     
  12. Sleven273

    Sleven273 Registered User

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    Yea I am the same as Rarrrrr. They apparently issued a letter on the 16th January 2009. I have a copy of it but I am unable to attach to this thread for people to see. If someone tells me how to attach it i'll do it straight away. It does not offer the option of a tracker or does not state that this was an option for the mortgage to move onto a tracker. It basically just gives you the option of standard variable, if you wish to stay on the staff preferential rate or you wish to to switch to a fixed rate. I wonder if the T&C's are the same as the people who have that clause 3.2 with the option to revert to tracker at the prevailing rates . They did not provide me with the T&C's although I requested them previously. They only sent Part 1,Part 2, Part 5 &6 but left out the other Parts in the letter of offer fr some reason.
     
  13. Gracie debru

    Gracie debru Registered User

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    Just wondering if you have logged complaint against staff business?
     
  14. Sleven273

    Sleven273 Registered User

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    I rang the line on their website and they said that that no letter issued but the examination is ongoing. I got the docs early last year and have done nothing since. I drew down in Feb'08 just before the the bubble. I should really be more pro-active to be honest. How about you?
     
  15. Gracie debru

    Gracie debru Registered User

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    Yeah well mine is slightly complicated wanted top up branch wouldn't do it so staff business would but ment giving up tracker!! Compliant logged also with the ombudsman at the moment so should have answer by mid February
     
  16. Sleven273

    Sleven273 Registered User

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    I take it they rejected your complaint. From reading other threads recently AIB generally always try and deny any wrong doing and try and put it on you as opposed to holding their hands up, especially staff business in past experience. They don't realise staff are the banks customers too unfortunately.
     
  17. JohnL23

    JohnL23 Registered User

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    When I read complaints from staff of both BOI and AIB it really surprises me the 2 banks haven't dealt with this sooner for risk reasons. I don't know if the staff have a case but I am surprised the banks haven't finally resolved the situation either way.

    BOI have 11300 staff of which 1800 are in dispute about their mortgage - that's 16% of the company believe their employer has wronged them. I don't know the figures for AIB.

    That's a lot of unhappy employees to have working in a financial company and must surely lead to a greater risk of fraud, lack of motivation etc... I am not saying the staff would ever resort to that but in these days of risk management for everything it has to be a increased threat factor to be considered.
     
  18. Sarenco

    Sarenco Frequent Poster

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    I suspect only a fraction of that 1,800 are still on the BoI payroll. Collectively the banks have shed a lot of staff since 2008.

    But I certainly take your broader point.
     
  19. Sleven273

    Sleven273 Registered User

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    So I became a little bit more pro-active about things over the coming days. I have reviewed my mortgage contract and contacted AIB. My story is the Following:
    1. Drewdown on a staff Preferential fixed rate of 3%
    2. Moved onto a ECB tracker
    3. Moved back to 3% Staff Preferential Fixed rate of 3%

    In January 09 AIB issued to all staff advising due to BIK that it was not beneficial to staff to remain on the 3% and they were rolling all mortgages to the SVR rate of 3.2%.
    From reviewing my contract I have the clause 3.2 in my T&C's of:

    "At the end of any fixed interest period, the Customer may choose between:
    (a) a further fixed interest period, or
    (b) conversion to a variable interest rate Mortgage Loan
    (c) conversion to a tracker interest rate Mortgage Loan
    "at the bank's then prevailing rates appropriate to the Mortgage Loan. If the customer does not exercise this choice, then the Mortgage Loan will automatically convert to the variable interest rate Mortgage Loan."

    They never advised I had the option (c) of conversion to a tracker in Jan'09.
    AIB content that the 3% preferential rate was not a fixed rate, however it states in the special conditions of the contract it was & that the breakage cost from the clause 3.3 did not apply if moving to a different rate from the staff fixed rate of 3%. I see AIB are offering 3.67% to people who have the clause 3.2 in other threads which is a crazy rate.
     
  20. jathclare

    jathclare Frequent Poster

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    Very interesting, the language is almost identical to that of my First Active Mortgage contract from 2005, which was for the Anglo-Irish Bank staff mortgage

    Even if there is a case, statute of limitations protects the banks...